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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Interest Rate Derivatives
The following table summarizes Old National’s derivatives designated as hedges:
September 30, 2021December 31, 2020
Fair ValueFair Value
(dollars in thousands)NotionalAssets (1)Liabilities (2)NotionalAssets (1)Liabilities (2)
Cash flow hedges
Interest rate collars and floors on loan pools$450,000 $1,559 $459 $400,000 $6,636 $— 
Interest rate swaps on borrowings150,000 3,422 — 325,000 628 1,816 
Fair value hedges
Interest rate swaps on investment securities909,957 16,516 9,883 347,516 1,145 172 
Interest rate swaps on borrowings377,500 4,976 — 379,000 8,793 — 
Total$26,473 $10,342 $17,202 $1,988 
(1)Derivative assets are included in other assets on the balance sheet.
(2)Derivative liabilities are included in other liabilities on the balance sheet.
Schedule of Derivative Instruments Effect on Consolidated Statement of Income
The effect of derivative instruments in fair value hedging relationships on the consolidated statements of income were as follows:
(dollars in thousands)Gain (Loss)
Recognized
in Income on
Related
Hedged
Items
Derivatives in
Fair Value Hedging
Relationships		Location of Gain or
(Loss) Recognized in
Income on Derivative		Gain (Loss)
Recognized
in Income on
Derivative		Hedged Items
in Fair Value
Hedging
Relationships		Location of Gain or
(Loss) Recognized in
in Income on Related
Hedged Item
Three Months Ended
September 30, 2021
Interest rate contractsInterest income/(expense)$(991)Fixed-rate debtInterest income/(expense)$943 
Interest rate contractsInterest income/(expense)5,650 Fixed-rate
investment
securities		Interest income/(expense)(5,096)
Total$4,659 $(4,153)
Three Months Ended
September 30, 2020
Interest rate contractsInterest income/(expense)$(1,294)Fixed-rate debtInterest income/(expense)$1,290 
Nine Months Ended
September 30, 2021
Interest rate contractsInterest income/(expense)$(3,817)Fixed-rate debtInterest income/(expense)$3,772 
Interest rate contractsInterest income/(expense)5,659 Fixed-rate
investment
securities		Interest income/(expense)(5,158)
Total$1,842 $(1,386)
Nine Months Ended
September 30, 2020
Interest rate contractsInterest income/(expense)$8,678 Fixed-rate debtInterest income/(expense)$(8,726)
The effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income were as follows:
Three Months Ended
September 30,		Three Months Ended
September 30,
(dollars in thousands) 2021202020212020
Derivatives in
Cash Flow Hedging
Relationships		Location of Gain or
(Loss) Reclassified
from AOCI into Income		Gain (Loss)
Recognized in Other
Comprehensive
Income on Derivative		Gain (Loss)
Reclassified from
AOCI into
Income
Interest rate contractsInterest income/(expense)$(164)$(11)$1,578 $1,550 
  Nine Months Ended
September 30,		Nine Months Ended
September 30,
 2021202020212020
Derivatives in
Cash Flow Hedging
Relationships		Location of Gain or
(Loss) Reclassified
from AOCI into Income		Gain (Loss)
Recognized in Other
Comprehensive
Income on Derivative		Gain (Loss)
Reclassified from
AOCI into
Income
Interest rate contractsInterest income/(expense)$2,612 $7,546 $3,483 $3,651 
The effect of derivatives not designated as hedging instruments on the consolidated statements of income were as follows:
Three Months Ended
September 30,
(dollars in thousands) 20212020
Derivatives Not Designated as
Hedging Instruments		Location of Gain or (Loss)
Recognized in Income on
Derivative		Gain (Loss)
Recognized in Income on
Derivative
Interest rate contracts (1)Other income/(expense)$46 $5 
Mortgage contractsMortgage banking revenue1,054 (2,811)
Foreign currency contractsOther income/(expense)3 49 
Total $1,103 $(2,757)
  Nine Months Ended
September 30,
 20212020
Derivatives Not Designated as
Hedging Instruments		Location of Gain or (Loss)
Recognized in Income on
Derivative		Gain (Loss)
Recognized in Income on
Derivative
Interest rate contracts (1)Other income/(expense)$356 $(582)
Mortgage contractsMortgage banking revenue(1,262)9,244 
Foreign currency contractsOther income/(expense)(46)25 
Total $(952)$8,687 
(1)Includes the valuation differences between the customer and offsetting swaps.
Summary of Derivatives Not Designated as Hedging Instruments
The following table summarizes Old National’s derivatives not designated as hedges:
September 30, 2021December 31, 2020
Fair ValueFair Value
(dollars in thousands)NotionalAssets (1)Liabilities (2)NotionalAssets (1)Liabilities (2)
Interest rate lock commitments$188,963 $4,472 $— $224,719 $9,375 $— 
Forward mortgage loan contracts215,238 1,305 — 261,027 — 2,335 
Customer interest rate swaps2,384,213 65,882 7,202 2,008,149 113,300 133 
Counterparty interest rate swaps (3)2,384,213 453 9,438 2,008,149 — 13,543 
Customer foreign currency forward contracts15,861 402 — 9,990 324 — 
Counterparty foreign currency forward contracts15,724 — 301 9,854 — 188 
Total$72,514 $16,941 $122,999 $16,199 
(1)Derivative assets are included in other assets on the balance sheet.
(2)Derivative liabilities are included in other liabilities on the balance sheet.
(3)The fair values of certain counterparty interest rate swaps are zero due to the settlement of centrally-cleared variation margin rules.  The net adjustment was $50.1 million as of September 30, 2021 and $100.4 million as of December 31, 2020.